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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Dash of Reality who wrote (146644)	11/28/2006 7:01:56 PM
From: slacker711	Read Replies (1) \| Respond to of 152472

Excellent question... Given that QC has stated that the impact to the bottom line is only $0.04 to $0.06 per share, I would have to assume that they will accrue revenue. From an accounting stand point I believe that they would be required to accrue for the amount of revenue (percent of royalty) that Nokia has agreed to in their negotiations. This would be the minimum amount of revenue (worst case scenario) that would be received from Nokia. I was actually thinking of it the other way....will Qualcomm account for possible payments to Nokia? One of the more popular scenarios has Nokia continuing to pay the current royalty rate but Qualcomm now paying Nokia for use of their IP. A back-handed way of giving Nokia a discount. I have no idea how likely this needs to be before it needs to show up in the accounting. Slacker